Sizing Up Spectrum Brands

10/27/2012 5:30AM

Meryl Witmer, a partner at Eagle Capital, says at the 2012 Barron's Art of Successful Investing conference that she likes the prospects for Spectrum Brands Holdings, a consumer-products company that is generating lots of cash.

This transcript has been automatically generated and may not be 100% accurate.

I ... welcome back to a friend's ... successful investing conference and Kopin Tan with Barron's magazine ... and twenty s and is now Witmer Maryland is the general partner ... of the bill couple Partners ... and she's also very long time member of the Barron's Roundtable constituent is no question the year ... but as you say that there's not much of the book value ... good ... well it's not good for the market I'd say but ... aam we're not finding a lot maybe others are ... more storage time finding things they usually we don't have ... a lot of ideas ... market a little high ... this comes ... but as always you come up with a few cute pics use that to you Michael Potts ... point to a higher conviction ... that uses Spectrum Brands yells LaVette more about that yes that ... is a consumer ... products company and they just needed acquisition ... of a teenage years Stanley Black and decker ... s and is a really great earnings enacted tax free cash flow dynamic there ... do not we think ... the refinery has been some techie down ... they should be made ... in after tax free cash flow at seven dollars a share ... in about two thousand and eighteen ... in his comes with a little bit of growth ... on ... day eighty Addison refinancing of some high cost debt that they ... and there's ... about a couple dollars of ... excess depreciation and amortization over all that capital spending he's so the reporter earnings in the lower than the actual ... free cash flow that you can take on ... a new cockpit with dividends ... or whatever ... aam ... we think will be somewhere between seven dollars and ten dollars into the ministers come and market position ... and wants to ... bury yet but then they hire division Avon ... number one in almost everything ... I have ... you know consumer locksmith but said brands ... their ball wind ... AMR a really very kind and spectrum toxic and the number two ... aam and the like haven't positions ... now you actually mentioned the ... conglomerate that I know very little of cool facts ... of ... which ... has businesses like clothing and one ... to tussle with more about that ... yet call acts and ... can in a new vision the biggest one that has the most potential ... for ... improvement ... is called the stop ... and that swelling equipment and consumables for welding ... and that right now has lower margins ... on in the ... sixty percent area ... and knows me might retire ... its major competitor in the galactic on this appeal margins that are much higher ... and we think is a new groove on ... peace out along with the other divisions ... we have a company that can go from ... two dollars and earnings ... to eighty five in after tax free cash flow ... said you know for for fifty share with a few years ... indeed some growth in the world for that to happen but ... I think the world look ... at some point ... again what a bow and the price of this and ... well ... you say and I think there are multiple its errors ... on ... it's somewhere between thirteen and fifteen may be higher ... because ... you can really grow that had to spend a lot of capital as a very good management team ... and reals up from this on and on to neighboring Danaher ... NAR really really smart and have made Tuesday evening ... ok ... he says that the multiple to deserve what about the multiple ... but ... on the multiple right now and next year is about thirty ... so you you and you you've reached that by improving operations and picking up all of this is a slight improvement in the multiple ... one of your own previous takes them from a ... previous conference did really well which is quick or in um I think its biggest most mice he ... gets ... home she's the like and ... we do still like a time ... yet the stock has moved to LA next so I it's not ... here we have sold some more shares than it still a nice size position ... and I think it has upside from here ... don't really know who has a very nice feeling its five point eight percent ... I have the ability day ... with some improvements in its refinancing camwhore ... I'm the next few years and it's it's very very ... well run ... and still I think some might ... be she ... said ... um just very quickly on ... your people always choose a value to the job um what are some of the ... things to be mined ... for value investors right now ... the winters anything higher ... you know ... I think it was a consign of embrace chaos is really a great one thing I'm forests as I stated media emotions that moment yet have a sharp pencil ... and gesso yet there may be ... some disasters you know that was the market ... I ... that though he had a really overseas and I in those situations you really want and he hasn't actually be ... ready willing able to invest that can stand by U S and great companies think prices ... are usually able to thank you very much but yes thank you ...